Three times since its IPO less than 2 years ago, Roku has suffered corrections significantly greater than this one and the violence has been just about as quick. All those corrections were also accompanied by FUD over the threat of rising competition and absence of a meaningful moat.
On September 29, 2017, day two for ROKU, the stock popped to $29.80 before sinking 38% less than a month later to $18.35.
Thereafter, ROKU exploded to $58.80 in less than two months on December 19, then cut in half to $29.01 on April 4, 2018, only 3 1/2 months later.
Once again the stock soared to new highs in four months and reached $77.57 on October 1.
ROKU suffered disproportionately during the ensuing downdraft to an ominously lower low on December 26, to $27.06, a drubbing of 65.1%.
Each time CEO Anthony Wood stayed cool, reassured the public that analysts were misunderstanding the Roku model and that the alleged competitive threat was overblown. Each time Wood under promised, over delivered on every metric.
I should add for those who seek coroberration, beth kindig has been perhaps the most knowledgeable and forthcoming analyst on ROKU, has been unwaveringly bullish from early on, and she has been keen on assessing the competition or lack thereof.
IDK, maybe this correction is just getting started. I’m not selling but would like to hear from Wood on this.